Indian iron ore exports have more than tripled in FY17. India has exported 14.23 MnT more low grade material in 11 months till Feb-17 compared with 6 MnT in FY16 which is 236% higher before the financial year ends.
In Feb’17, iron ore exports were recorded at 3.27 MnT against 2.76 MnT in Jan’16. Compared with numbers for the month of Feb’16, exports have increased remarkably by 256% Y-o-Y as the material exported then was at 0.92 MnT.
In a recent period a substantial increase has been observed in iron ore exports from Odisha Miners.
Exports from Odisha were registered at 0.91 MnT (from Paradip & Dhamra Port) against 0.43 MnT in Jan’16. For the period of Apr-Feb’17, exports from Odisha were registered at 4.27 MnT (from Paradip & Dhamra Port) which was only 79,000 MT for the same period a year earlier which is 54 times of the amount.
In Feb’17, exports from Goa were registered at 1.67 MnT against 1.76 MnT in Jan’17. During Apr-Feb’17, exports from Goa were registered at 12.14 MnT against 3.86 MnT in the same time frame last year.
At one point in the month of Feb’17 the global iron ore prices touched 30 months high at USD 95/MT pushing Indian iron ore exports up for higher gains as well as few other key influencers for the increased amount of outgoing material like
1. The large quantity is sitting at the ports against relatively low dispatches.
2. Odisha based merchant minors have produced 58.2 MnT against the dispatches of 51.06 MnT iron ore (till Jan’17), excluding movement for exports.
3. The piling inventories to be cleared to achieve the Environmental Clearance limit set by the govt.
4. Lucrative global prices have also been one of the reasons for the increased export of iron ore.
5. Rake availability for exports is comparatively easier than for the domestic movement.
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